Alumina Ltd. (AWC.AU) said Monday it will contribute about US$120 million toward the development of a US$10.8 billion aluminium project in Saudi Arabia.

Alumina's joint venture partner, Alcoa Inc. (AA), is teaming up with Saudi Arabian Mining Co., better known as Ma'aden, to develop an aluminum complex featuring bauxite mining, alumina refining and aluminum smelting.

The deal will see Alcoa and Alumina provide alumina for the first stage of the project, due to come on line in 2013, with a bauxite mine and alumina refinery to be developed in the second phase.

Alumina said it will consider a variety of debt funding options for its equity contribution, which will be contributed progressively between 2010 and 2014.

"This is a unique opportunity to invest in very low cash-cost alumina production capacity in a major growth region for the aluminum industry and further diversifies our operational and geographic footprint," Alumina Chief Executive John Bevan said in a statement.

-By Alex Wilson, Dow Jones Newswires; 61-3-9292-2094; alex.wilson@dowjones.com
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